Why? Because knowing your retention rate is the first step to increase it, and if you increase it, it means that you have made progress in the effort to obtain loyal and long-lasting users.
From JUMP Data-Driven Video, a business data management platform designed specifically for video service players, we are going to develop the concept of customer retention rate and how to calculate user retention rate, to later give you some guidelines on how to increase it in businesses related to the audiovisual area.
What is the customer retention rate?
It is the rate that measures the number of users or customers that remain in your business in a given period of time, for example, one year. If you achieve a high retention rate, this means that your users are loyal, while if the retention rate is low, it is evident that you are suffering a significant exodus of customers, and you are not able to seduce them with your proposal to keep them in your business.
Audience Churn risk prediction is crucial for any video services business to make better retention decisions upfront.
Without a data-driven strategy, it is virtually impossible to improve the results of your video service. Most video entertainment companies do not have the tools or resources to develop this type of strategy, however at Jump Data Driven, we have the Churn management tool, which allows you to develop an effective strategy to identify customers who want to leave and improve retention.
How to calculate the user retention rate?
You must subtract the customers you have at the end of a period from the new customers obtained in that period, dividing the result of this subtraction by the customers you had at the beginning of the cycle. Subsequently, multiply the result by 100 to obtain the percentage and you will have discovered how to calculate user retention rate.
For example: at the end of a year you have 2000 users, 200 were added in those twelve months and at the beginning you had 1800 users. The retention rate in that year will be 100%:
2000 – 200 % 1800 = 1 (x 100 = 100 %).
What is the optimal value of the retention rate for a video monetization platform?
The example we have given you is only theoretical, to understand how to calculate user retention rate, but in reality it is almost impossible to achieve 100% user retention. There is no ideal value for the retention rate in video platforms either, because it all depends on the moment of the business and its characteristics. It is considered optimal that, from cycle to cycle, there is an increase and not a decrease in the retention rate, a trend that shows that user loyalty is on the rise.
How to increase the user retention rate on video monetization platforms?
Specialists believe that in order to increase the user retention rate, it is very important to divide the analysis of videos into three parts: introduction, with the first minutes of the production; body, which covers most of the content; and closing, with the final minutes of the video.
The beginning must be shocking and very attractive, because most users abandon the video at this point. In the body you should seek to separate the content into sections to keep the attention and, finally, in the closing you have to be original and link the video with others, so that the user stays on your platform. If he reached the end of a video, it means that he found it attractive: you must take advantage of it and try to catch him for your platform.
The beginning must be shocking and very attractive, because most users abandon the video at this point. In the body you should seek to separate the content into sections to keep the attention and, finally, in the closing you have to be original and link the video with others, so that the user stays on your platform. If he reached the end of a video, it means that he found it attractive: you must take advantage of it and try to catch him for your platform.
In JUMP Data Driven, we have JUMP Retention, a platform that will allow you to analyze the behavior of your users.
